you're right >> i think everybody can agree. >> incentives for that is part of the answer. >> anecdotally, this is happening with some of my friends. great discussion, appreciate it. thank you for that interview bill smead joining us as well. that does it for "the exchange." i'm going to join tyler and melissa for "power lunch" which begins right now kelly, thank you very much earnings season begins with a bang j.p. morgan surging on record results. is it a green light to keep riding this rally? a mega deal with the oil patch what's fueling the m&a and which others may get hitched in the sector and plus, the future with 5g cellular. the grand plan president trump set to speak about it this hour "power lunch" starts right now welcome to "power lunch. i'm melissa lee.

earnings, mega deal and ipo a great cocktail for the rally it's 5:00 somewhere, right double digits up more than 290 points at its high got the s&p 500 up by 0.6% and disney is the biggest stock on the high and then a ton of names added today. starbucks, visa, hilton among them. >> let's get straight to bob pisani at the new york stock exchange with what's driving the trading action this hour bob? >> reporter: hello, cancel like. perfect day for the bulls. strong china data, solid beef from j.p. morgan and then the state of the economy, playing perfectly into the bulls scenario that china is bottoming, the u.s. is strong and earnings have been cut too much but the analysts and going to be stronger than expected second, we are less than 1% from a new high on the s&p 500 but we're also less than 2% from a new high on the nasdaq but still 9% from a new high on

the small cap russell 2000 despite the good news, you know the volume in volatility has dropped dramatically in the last couple of weeks? certainly down here at the floor, it's a sign investors are not going all in despite this rally. that's skepticism one thing, one of the best things this bull market has got going for it. a fourth thing, jumia, african e-commerce up 55% its first day of trading. back to you. >> all right robert, thank you very much. jamie diamond sounding bullish. with analysts, dimon saying if you look at the american economies, consumer in good shape, balance sheets in good shape. people going back to the workforce and companies have plenty of capital. dimon goes on to say it could go on for years thumbs up for the next leg of a rally? mark, chief with montgomery scott and randy warren

chief investment officer of warren financial service mark, why don't we start with you. is this rally just a little bit of rocket fuel from the bank reports today? >> certainly didn't hurt needless to say, not only in terms of the actual results which at the end of the day, what is key to market behavior, the report from jamie dimon, extremely encouraging. anyone in the perch he exists in, overseeing the biggest bank in america but on top of that, one who is involved in various aspects of the economy and importantly, the credit impulse which is so important to understanding the dynamics of deteriorating credit conditions and loan demand expanding, making comments about that is not just him talking his book but rather, is indicative of what he's seeing and i think bullish and in fact, very complementary to the view we've had all this year. obviously, for my years, it was welcome. >> randy, let's turn to your view and whether you think the

market can end the year higher than it is today if so, what could take it there? if not, what could keep it from going there? >> i think it probably will go higher but the comments from j.p. morgan, it was supposed to be a bad quarter in earnings but things are already starting out to be better than expected that doesn't mean they're fabulous yet, but usually, in the last few years, the economy has heated up as the year has gone along so earnings have improved as the year has gone along but what investors really need to focus on right now is what's coming next what's coming down the pike? where should they be investing next and you've talked about it already in the last hour and we believe it's 5g. that's an area where investors need to get educated and we're going to be working with our clients to make sure they know what's coming in that area >> is that the phone providers network providers? how are you investing in 5g at this point, randy? >> right now, it's actually kind of tough because you want to look at fundamentals and they're

not great. i mean, at&t has got 6% revenue growth t-mobile, all that kind of stuff. they're not burning it down. however, you've got to look at the future and how things are going to shape up when 5g starts to roll out and so the t-mobile, sprint and carriers look interesting but the palo alto networks of the world and even all the way to autonomous vehicles these are the things that are going to be really exciting and are going to get investors excited as the year rolls along and as we go into 2020 >> mark, i hate to be a debbie downer on a day 1% away from the highs on the s&p 500 but should we take the bull and run with what jamie dimon said or give credence to what wells fargo and why it increased provisions and because they see that economic indicators are pointing to higher unemployments ahead and maybe we should look outside and think about the shadow banking, the non-bank lenders, the credit

card issuance with the potentia risks to the system? >> i mean, certainly, we knew from the ceo commentary that in front of their congressional testimony here earlier this week, that is shadow banking is a great concern almost shared uniformly across the seven executives that were there but the fact of the matter is, no. economic activity in the united states is sturdy and not only the benefit of the consumer which jamie dimon alluded to that's going to help propel economic growth going forward but still a positive fiscal impulse left over from the budget act of 2018 and we're seeing, now, i think more evidence than just green shoes that china is starting to improve, which is so important to the global backdrop so i don't want to sound overly paul ya nah but at the same time, we're increasingly sanguine about how it's going to unfold >> you liked energy.

do you like it more today in light of this anna darko chevron hook-up than yesterday and do you see more deals coming? >> tyler, perhaps my notes actually said we thought the energy stocks were due for a catch-up to oil prices and yes, i do what is evidence of is investors realizing with substantial enough bid and higher oil prices should breed a more positive climate to see more c consolidation with the industry occur. >> you expect an announcement out of the white house later this hour. we're going to take it and talk it a little bit more this hour if you had one stock to choose that is going to be a beneficiary of the 5g, give me your favorite potato chip here >> it's always hard to pick just

one, but i'd have to go with the two that are builds the towers both making a lot of revenue increases and the growth is there and future is there. those would be the two we're looking at >> thanks for the answer have a great weekend guys. >> thanks. the deal of the day. chevron buying anadarko petroleum, making it one of the biggest. what fueled this deal? >> we've been looking, at our company has strengthened its

financial position it takes a great company and plays to our strengths and shale, deep water and natural gas allows us to continue to win in any environment and deliver great value for our shareholders >> also worth noting, but made a superior bid to buy anadarko for what this means, with wolf research thank you for being with us. >> thanks for having me. >> reported the afc savered cvx stock and that's one of the primary reasons that oxy was spurred. i wonder how you see this space shaping up with the overtures prior to the announcement of this deal. >> i agree with the earlier points that the space is due for consolidation. one of the big issues is whether management would want to sell the companies down here because they've lagged recently with oil

prices, so i think what you're seeing with the deal and why this space is participating too isn't necessarily because now new universe of buyers to consolidate the space but because you've got willing sellers now with the lag in the sector, so i think that was actually the big one that was lifted with the announcement and certainly makes sense that chevron stock was the preferred currency here because going to allow anadarko shareholders to participate and if management is willing to pull the trigger and open the door for consolidation from the seller's side, that's probably the big news of the day. >> it's interesting you're describing this as the willingness of companies to sell and the attraction to chevron stock which of course has outperformed the industry, over the last five years, only up 2%. really that much more compelling than a higher cash offer why would anadarko say no to having that cash or higher price

today? >> we don't know the timing of the earlier offer. it could have been a long time ago. seems like this came together relatively recently. chevron like all the companies in the major oil group keeps the screen of logical acquisitions anadarko high on that screen for a long time but could be in the recent history that it made sense to come together, so i think timing probably plays the biggest role in terms of why chevron is the right operator for these assets and i point to one project anadarko had in the portfolio. one of the biggest undertakings in the world and in oil and gas. chevron has experienced in the lmg space that might make them unique so when it comes to pulling that project over the finish line, that might have given chevron the edge a little. >> who else was vying for that asset, sam and was this a sewn

up deal once chevron got into it can you hunch that anadarko always had its eye on chevron? who else was buying and was it kind of locked up? >> so, if anadarko's selection was based on who can execute mozambique and the permanent basis assets, that would put the oil majors in the lead it's a small universe of companies that could do that and sort of goes around so now form a plot there and so there's synergies to capture based on the fact that now this big block of land is connected by one owner. >> if you're an investor and thinking, i want to partake in what could be a wave of consolidation, do you buy exploration and production names, is that the way to go >> i think from here, to be honest with you, this chevron

combination feels a little bit unique just in the sense that what the value that chevron can bring to the asset base from the oil major standpoint, more likely to see consolidation among private, target private companies as opposed to corporate mna. within the independent space, that's where you might see some additional mna the reaction of the market is pretty logical the basin is really where it's at in terms of lower 48 kwo development. so you see that be most active. >> thank you >> thanks. shares of disney hitting new highs and adding more than 80 points to the dow today. the company announcing pricing for its streaming service. did the number hit the sweet spot with investors and consumers in looks like it not the only stock boosting the dow. mcdonald's with the all time high microsoft too since its ipo in 1986 and cisco systems at highest level in 18 years.

a lot of superlatives in the market today stay with us state of the art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

xfinity watchathon week. television is back! now through april 14, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! so, you can get more into what you're into. whether it's more laughs, oops. epic escapes, or high-flying thrills, get more into what you're into. just say "watchathon" into your x1 voice remote, or download the xfinity stream app. xfinity watchathon week, free. now through april 14. you could argue netflix has done good for us because they've ceded the marketplace with over the top content distribution and placement. so i like launching when we are launching. and believe that it's a great time for us. >> that was disney's ceo bob iger making his case for how

netflix paved the way for the new streaming service. wall street enjoying that launch shares of disney hit a record high today and netflix is tumbling more than 3% right now. just in the past hour, disney also dropped a first look at the newest "star wars" movie, yes, episode 9. the rise of sky walker, is the force strong with disney right now? "wall street journal" personal tech column, cfra, tuna amobi. good to see you both >> good to be here. >> they dropped the trailer on top of everything else >> this is now the only news people are talking about. >> what a turnaround remember the media meltdown in 2015 about cord cutting and disney shares? this is a complete turnaround. what do you think about the details of the streaming product? >> i mean, i'm just thinking $7. i keep coming back to $7 and what that might do to the rest of the streaming services at this point i mean, this seems like a way for disney certainly to just get in there, get people to start

paying and then i have been thinking, how long does $7 last for. it doesn't stay for long if they keep adding in more content. they're talking about lots of content, clearly aimed at kids and families, but how long until they add in more and paying $14? on top of all the money we're paying to these companies. >> this goes to the addressable market which we've been curious about. for disney plus, that's worldwide. a third of that in the u.s. but the fact that the whole simple sons catalog is in there makes me wonder if they just expanded the total addressable market beyond just families with kids >> you know, i think with that number, kelly, potentially conservative netflix took 8 or 10 years to get to that number and wasn't even like 3 years ago netflix completed the global launch but disney with a more systemic much faster international rollout which makes us to believe that for them to get to that number

globally would be a lot faster so to your point, i think the content layout that we saw yesterday, you know, to be honest with you, i think it's really mind blowing here and they're going to add to that that price point is aggressive and the value proposition is unquestionably come ppelling wih the price inflexibility. >> maybe we're being too conservative, the thing netflix didn't have was the full rollout but disney has that in place or at least has the system that netflix currently has, plus it has the 5g which is going to roll that eventually and that could actually help add these people to the service. >> and they've got the content all the big tech companies wanting to play in content amazon, apple who had announced their apple tv plus. we're going to have another plus service around the same time here they've got 90 years of content. i mean, as a parent, i'm like, yeah, sign me up, again, for sure feel like we pay three

times this amount in a couple of years but for now. >> i take your point tuna, when i heard $6.99, i thought, that's genius they're coming in and people say, $6.99, i'll try that. that's going to attract a lot of people up front. >> and that's right, there were gasps in the presentation. >> gasps >> when they threw out the number bob iger said it will be potentially below netflix but $6.99 but pushing a little bit i think there's a number of technological tail winds that will, you know, benefit disney much more than netflix talk about the broadband households penetration worldwide. the transition to 5g, all of these things i think really bode well for accelerating. >> in anticipation of this, i asked you a question, rather clumsily if we got to a point with so many streaming services that we're just replicating cable. you said no but you say yes.

>> i say yes >> argue >> i'm already paying what i would pay. in streaming services alone and i still pay for cable. guys why am i spending so much? that's what i'm really here to talk about but i'm paying for amazon, netflix, i'm paying for hulu, i'm definitely going to be paying for disney. that's four channels, right, apple plus that's coming out >> i would argue the opposite. look at the demand for streaming, right i think we're still barely scratching the surface here. especially globally, right the secular trends are quite favorable. broadband penetration is relatively low and as the tv service, you know, universe continues to decline, there's nothing to stop people from kind of mixing and matching everyone is looking to create synthetic bundle at the much lower cost so when we think about the the opportuni opportunity over the long-term, a lot of runway left. >> when you have a buy rating on

netflix with a price target, when you see the reaction netflix today, do you think that's the wrong stock to take market cap off of on the back of disney it should really be the cable providers, the networks, et cetera not netflix. >> that's a good point i think the concerns with netflix reaction are somewhat overdone, right? this is a phenomenal data. i think netflix and disney unquestionably among potential winners. i don't want to subscribe to knee jerk reaction here because disney has made an impressive presentation that you've got a netflix killer here. >> i don't know which of you wants to take this, but is it the other programmers? in a world where viacom is fighting for relevance how can you compete with these offerings from disney, from netflix, hulu? going back, joanna, to the programmers who are in the traditional bundle they can't come out with something this compelling. so where does that leave them? >> they get gobbled up by

another service and split the revenue and putting some of the programming on hulu or wherever they're at and also then trying to all figure out, like, we need the tv guide of today, right where do we get all of this stuff and where do we pay? >> i think disney is all in. to be successful in this space, you have to be all in. it's really, like, over time, you know, the companies experimenting with different business models and maybe content and just hesitating, you know, i don't think that's the way this kind of shakes out. the winners are going to be those that commit fully, invest aggressively and basically, jumping in with two feet and that's what disney has made this call and the numbers they threw out here. >> does espn just not matter, tuna, anymore? that is still in decline yes, the numbers for espn plus look okay but what did they say? $6 million to $8 million $8 million to $12 million. >> as much as, you know, your point is well taken but that's a quadruple from where they are today. >> from espn plus. >> but still shedding people from the core espn.

>> our forecast is that in the next three or four years, from an eco-system perspective, the increase with the online video and that's going to play out and investors starting to realize that now and that's why you see the positive reaction on the disney shares that have, as you know, traded some range and poise for now sustainable catalyst >> will you teach me how to tie a bow tie next time? the man can tie a bow tie. you know how to do it. >> thank you, appreciate it. tu tuna amobi, great discussion. shares of pg&e are spiking up about 7.5%. gavin newsom released some comments he's having a news conference right now, releasing the results

of a wildfire strike force that he convened shortly after he took office. that strike force is recommending that wildfire liabilities should be spread among a number of stake holders including rate payers as well as investors and insurance companies that finding is sure to be controversial given how volatile many of these stake holders are in the wildfires and just the number of deaths and damages resulting in the past couple of years of california wildfires but again, the results of this strike force study has come out and as a result, we're seeing shares of pg&e spiking. back to you guys >> dede, thank you the 300 page filing for what you need to know about the company before going public, plus, the president about to speak at the white house on 5g we'll take you there as soon as it begins. "power lunch" will be right back i'm working to keep the fire going

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president trump to talk about the rollout of 5g networks in the united states this is a big deal for wireless provider the president has been pushing them to step up their efforts in this very critical area. we'll take you live to the white house when the president starts speaking will he wear a hat like so many in the room are? >> that would really ruin one's hair style, just saying. >> it would. >> uber releasing the s1, possible ipo in may. deirdre bosa and leslie picker, are digging in what are the key things investors need to know >> you said it 300 pages plus, but i would say the very first thing investors need to know is that this is the company that is fully in investment mode, chasing growth at all costs and may never make money. whether that be any businesses, ride share, food delivery, autonomous driving, freight, uber is going to be spending money to get market share. that said though, melissa and

leslie, some of the markets are doing better than others north america, europe is a category leader but like india and south america, the competition is extremely fierce so it will have to keep spending heavily to fight off rivals. >> it feels almost like a melting ice cube in that they say for each line of business, the take rate or the percentage they actually take to the company is going to decrease in the near term. it seems like there's no path to profitability at all >> that's the key question investors are asking is can you turn on and off some sort of faucet or lever that would ultimately get them to that point of profitability and there's a really interesting metric that they highlight in there as one, the core platform contribution margin which really looks at their profitability of what they do on an everyday basis with their core business, excluding rnd, and sgna. that has been coming down over time which would imply to investors that, you know, the types of

faucets that you could turn off maybe in other companies such as, you know, holding back on rnd a little bit to be profitable or -- >> so it's sort of, the contribution, that's the very thing that should be going up as the business grows older is it not? the one thing that says the contribution margin is positive leading towards overall profits. >> i think when i saw that, i also thought, ahead of the ipo, they're dialing it back to make it look better what happens after the ipo when they actually have to deal with growing the business and they've got to turn those things higher? >> exactly i think deirdre had something to say. >> i want to chime in too because when we look at the contribution margin, this is what wall street looks at, its profitability but here where we sit in san francisco, the reason that uber has been able to raise 20 billion plus dollars in the private market is that investors also, this is the bull case, look at the total addressable market if you look through, you see it's market share. the ride sharing market share, not just uber but everyone in this space is less than 1% in

every single market. these are miles traveled as a whole. if you believe in this bull case, you're not concerned about the profits being three or five years off. uber is one of the megacap tech companies that is at the forefront of transportation as a service. a whole new field. >> i think a lot of investors give leeway to these companies to show impressive topline growth this speaks to the maturity of uber's business as well, that has been plateauing in a way that surprised a lot of investors who were texting me the second they were so surprised to see on the quarterly basis, you really drilled down below the surface level financials, things do appear to be leveling off, despite the fact they're expanding in these new markets and business lines >> ladies, thank you deirdre bosa and leslie picker. we continue to wait for president trump's speech on 5g deployment in the u.s. bring it to you once it happens. stay with us ow lch te quk break. back in two.

president trump is speaking right now at the white house about the rollout of 5g technology across the united states there he is greeting some of the

construction workers who are tasked with installing the fiber, et cetera, for 5g we're going to go to him live as soon as he approaches the podium, but here he is welcoming everybody into the white house ahead of this event. are we expecting major announcements? >> two from the president as we watch him work the room here in the roosevelt room one is a $20 billion fund designed to increase investment in 5g. let's listen to the president. >> thank you all for being here to discuss a critical issue for our country's future winning the race to be the world's leading provider of 5g cellular communications, networks, it's all about 5g now. 4g, everybody said we have to get 4g and before that, we have to get 3g and now we have to get 5g and 5g is a big deal and that's going to be there for a while and i guess, at some

point, we'll be talking about number six what do you think, that's true but right now, we want to be the leader in this we're the leader in almost everything else. and grateful to be joined by fcc chairman, doing a fantastic job and secretary of agriculture, steven senske. thank you, appreciate it and tell sonny hello he's doing a tremendous job. really tremendous. secure 5g networks absolutely will be a vital link to america's prosperity and national security in the 21st century. 5g will be as much as 100 times faster than the current 4g cellular networks. it will transform the way our citizens work, learn, communicate and travel health care will be better and

more accessible. it covers basically everything when you get right down to it. pretty amazing and just as 4g networks pave the way for smartphones and all of the exciting breakthroughs, they made possible so many things, this will be more secure and resilient, 5g networks will also create astonishing and really thrilling new opportunities for our people opportunities that we've never even thought we had a possibility of looking at. we cannot allow any other country to outcompete in the powerful industry of the future. we are leading by so much in so many different industries of that type and we just can't let that happen. the race to 5g is a race america must win and it's a race, frankly, that our great companies are now involved in. we're giving them the incentive they need. it's a race that we will win in the united states, our approach is private sector

driven and private sector led. the government doesn't have to spend lots of money. according to some estimates, the wireless industry plans to invest $275 billion in 5g networks, creating 3 million american jobs quickly, very quickly. and adding $500 billion to our economy, and as you probably heard, we had another alternative of doing it that would be through government investment and leading through the government, we don't want to do that because it won't be nearly as good, nearly as fast and especially in that business. i think they will be better doing the job than a lot of folks we know and love to accelerate and incentivize these investments, my administration is focused on freeing up as much wireless spectrum as needed we're going to free it up. so they'll be able to get out there and get it done. removing regulatory barriers to the buildout of networks as chairman pie will discuss with you in a moment, the fcc is

taking very bold action. probably bolder than they've taken before a new frontier to make wireless spectrum available by next year, the united states is on pace to have more than 5g spectrum than any other country in the world that's a big statement because as you know, some people got ahead of us. we should have been doing this a long time ago, as advanced as it may be in addition, last october, i directed the department of commerce to develop a national spectrum strategy to free up even more spectrum more economic activity, including 5g the fcc has also taken action to streamline the permanent process for 5g infrastructure with state and local governments. that's a big deal. takes too long to get permits. we're going to free that situation up and we're going to put limits and the local areas are going to listen to us very

strongly they have a big incentive to do that they must now approve new physical infrastructure within 90 days instead of many years. it can sometimes take three, four, or five years. we'll put a limit of 90 days there is now a cap on the unreasonable fees local governments often charge they get greedy. they think, hey, we can really take advantage and it ends up that everybody gets hurt so we're putting a cap on those fees these changes will contribute greatly to building high speed networks across america and it's going to happen very quickly very, very quickly by the end of this year, the united states will have 92 5g deployments in marks nationwide. the next nearest country, south korea, will have 48. so we have 92 compared to 48 and we're going to accelerate that pace greatly but we must not rest, the race is far from over american companies must lead the

world in cellular technology 5g networks must be secure they must be strong. they have to be guarded from the enemy. we do have enemies out there and they will be they must also cover every community and must be deployed as soon as possible. as we are making great progress with 5g, we're also focused on rural communities that do not have access to broadband at all. and we have a couple of people from the great farms that i love that i'm sure voted for me, i won't ask them, but i think for the most part? yes, good. i think they did i know that almost automatically, i'd be very surprised. but i have to say, i've been talking about broadband for rural america, the farmers and others they have really been, they just haven't been treated properly and now what we're doing is we're making it a priority that's the areas where we want to go to first

so they're covered we're also working closely with federal agencies to get networks built in rural america faster and at much, much lower costs than it is even today. so now i'd like to introduce a very special man who's really worked hard and gained the respect of the world, truly, because they see what we're doing in our country we'll be making two major announcements to accelerate our 5g fuf. >> that's the president with the fcc commissioner and several others there in the white house. we'll go to eamon javers with some of the top lines out of this newsroom. eamon? >> yeah, tyler, that's right a couple of announcements the fcc chairman about to make one is this $20 billion fund from the u.s. government designed to spur the kind of investment that you just heard the president talk about rural broadband access that's a big area of focus for this administration. so that's one of the areas that we're going to see them focusing on here.

we're also seeing this administration focused ultimately on deploying 5g across the country in an effort, really here, to push back on chinese dominance of 5g. we've seen concerns on this huawei, that company making some inroads with 5g deployment around the world this administration really hoping to focus on pushing back on the success of companies like foreign competitors like huawei and making sure that american companies have the opportunity to compete in this 5g universe so i think that overall, this is a politically sort of a twofer for this president two political big wins for the president and sort of embracing that talking about the hard hats in the room and the cowboy hats in the room and that is a political symbol of who the president is hoping to benefit from this announcement today and also, exactly where this

administration hopes to go ahead of that 2020 election, tyler. >> eamon javers at the white house. >> for more on how the fcc is handling the role of 5g and how important it is, josh lipton josh >> i think what eamon just alluded to here, two big announcements. one, start your third and as the fcc said here, largest ever spectrum auction in december and then eamon mentioned the new $20 billion rural digital opportunity fund so you're connecting that much more home and small businesses big news because there's really no hotter topic, melissa, in tech than 5g bringing super fast wireless speeds to consumers and already, you see tech companies reacting, right? smartphone powerhouses like samsung. already out there unveiling 5g enabled devices and when we talk about 5g, not just the speeds. you're also cutting down what's known as latency or the lag time when data is sent or received. why is that important? because it means a vr experience could be smoother.

it means in the future, improve the reaction time of self-driving cars. that's obviously important for all those tech companies like alphabet's wamo exploring that technology though you have to remember there are hurdles there. i spoke this morning with idc's jason lee. he covered this space. in terms of the hurdles he'd mention, talk about cost talking about maybe as much as $300 billion to roll out 5g to the entire country and then time frame too, he thinks you're probably going to have to wait until late 2020 to see mobile services. >> let's bring in ben fox reuben, senior reporter with cnn. i'll start off with you and start off with the point josh was making and that is, this costs a lot of money to build out. so as a consumer, how will we see that play out in what we pay for our service? >> we know from verizon, they're going to charge an additional $10 a month for a 5g service

that's at least a minimum, what you would expect to see from verizon. i wouldn't be surprised at all if at&t or t-mobile or sprint did something similar. >> and ultimately, i would imagine that these would make more money because just more things interacting with the network and more data, et cetera. >> that's the expectation when you have more people using the technology more often, creates the ability to have self-driving cars and more smart homes, potentially buying more technology and need those kind of connections to run those things. >> this is a big auction as we spoke about last hour, not the best quality spectrum that the government could be auctioning off. sprint has a lot of that spectrum currently, the stuff that verizon and at&t has this veteran urban areas. how important is it that sprint has the funding to roll out what the resources they already have for 5g or the government stes forwa -- steps forward and says we're

going to auction off the rest of the spectrum that everyone deploys? >> all of these carriers need more different types of 5g spectrum they have a little bit right now. they need a lot more that's why this auction was called for there was an auction fairly recently too, but really to get this moving and to really actually make this a robust network, the government does need to get involved and sell a lot more of the spectrum >> you know, we've talked about the bigger companies involved in this whether it's sprint or at&t but i'm wondering, if you get below the surface of those companies, which kinds of companies, which names of companies will be the beneficiaries? >> surprisingly, i think one of the biggest beneficiaries, you set it up and josh's comments in particular emphasized the

significance of this it's apple rather than at&t and verizon, and the reason is this multiple opportunities there's going to be an iphone upgrade and also have opportunities to advance augmented reality that's going to become a reality and health care and autonomous cars, all things apple has interest in if you want to play it safe and apple one of the best ways to do it. >> what about disputes with qualcomm extremely important to the deployment of 5g. >> the timing on this, glad you brought it up. likely apple will be perceived as late to the game and specifically, they may not have a 5g phone out until potentially the fall of 2021

i don't think that's an issue and part of that reason is because of what's going on with qualcomm and because apple wants to vertically integrate around the chips so eventually, they want to design that own chip and essentially move away from qualcomm but that takes time they have they have a stalking horse with intel they can work with i think it will be late to the game with apple. people may say my belief that apple is a great play, they may be late. we won't have 75% coverage for another few years. i know the segment we're talking about, trump was talking about 92 cities. that doesn't mean anything what matters is the total coverage i think even if apple doesn't come out with a 5g phone for another year and a half they will be squarely in the wheelhouse without qualcomm. >> to tyler's point, who are the suppliers, the players who are best positioned to take advantage of this? >> at this point i see a lot of

the carriers being huge beneficiaries, will be charging consumers directly i do see that as a long-term play gene is right. >> samsung will beat them to market >> absolutely. they've already announced their 5g phone >> by a lot. >> the problem is and everybody knows this -- >> i'm sorry we want to go to the president who is answering questions >> a lot of communities want to get out of sanctuary cities, they don't want them they always seem to have open arms rower than moving the illegal immigrants to other parts of the country, first of all, we're getting them and doing the best we can we have to change the laws we're apprehending thousands and thousands a day.

the law only allows us to hold them 20 days because of the most ridiculous laws in the country we have horrible, old-fashioned laws that are put in by the democrats. we're willing to change them we can do this in 15 minutes whether it's catch and release or chain migration or any of them the asylum laws are insane they're given a statement to read by lawyers given to them, read this statement. it says i have great fear for my life i have great fear being in my country even though some are holding their country's flags and waving their country's flags and then they talk about the fear they have of being in the country the flag they were

waving freely. we are looking at the possibility. california, the governor wants to have a lot of people coming in we'll give them to the sanctuary cities to take care of we can only hold them under current law 20 days. i have to say border patrol has been incredible. the wall is going up it's going up fair ly rapidly we're building miles and miles of wall. we'll have close to 400 miles built by the end of next year. just got back from texas and some of the ranchers told me you have bodies lying all over the

land where the coyotes give them a can of soda and a sandwich and say houston is 300 miles in that direction. the people don't know what that means. that means they can't make it. they have no chance and they die. many people die. they say just head in that direction. we are doing a lot about it. mexico is apprehending and bringing back to the various countries that we're talking about, honduras, guatemala, el salvador, bringing people back to those countries, colombia, to a certain extent and they're going back to those countries. we could fix that and so fast if the democrats would agree. but if they don't agree we might as well do what they say they want

they call them the illegals. they came across illegally we'll bring them to sanctuary city areas and let that particular area take care of it. california is always saying we want more people and they want more people in theirsanctuary cities we can give them a lot we can give them an unlimited supply and let's see if they're so happy they say they have open arms let's see if they have open arms the alternative is to -- >> you've been listening to the president fielding questions after a 5g event we're out of time on our 5g conversation much more after this

president trump laying out his plan for 5g across the u.s. and big bets are being made on this technology and potential. dom? as we talk about some of the longer-term prospects for 5g, at cnet the carriers. at&t and verizon, verizon out with their 5g.

check this out as we build out the networks companies that could benefit here, sienna and cisco systems speaking of those network companies. corning, glass works, another stop to keep an eye on and in focus. qualcomm, some of the names but, again, as hardware starts to adapt to the networks those types of stocks, semiconductors, could be in the hand sets and everywhere else 5g ends up >> thank you, dom chu over there at the board >> i would add watch sprint and t-mobile as well if they're serious, sprint has the spectrum as was said last hour they don't have the money blocking that tie-up would not help the rollout

>> this could be a real opportunity for them to make inroads to go from a kind of -- >> last to first >> are you excited about 5g? >> so excited. i cannot wait! >> you are as i was earnings season yesterday >> on that note thanks for watching "power. "closing bell" starts right now. >> welcome into the final hour of trade disney shares having their best day in nearly ten years. we'll look at the potential risks for its new streaming service. a $33 billion deal in the energy space chevron announces it's buying and other stocks. 5g just got a big boost from the trump administration "closing bell" starts right now. >> i l